A person’s credit score is of great importance. This score may affect his or her ability to get a job, secure housing, or obtain a credit card, among other things. If your score is not where you would like it to be, it’s time to learn how to repair it. Following are five steps any person can take to bring their score up.

Obtain Your Credit Report

The first thing you must do is know what is contained in your credit report. Many people are unaware of what is currently listed on this document and it is hurting their financial situation as a result.

Until you have this information, you cannot know where you truly stand when it comes to your finances, so do this before moving forward with the process. As there are multiple credit reporting agencies, be sure to request a report from each agency because what is listed on one report may not be present on another.

Have Any Errors Corrected

Countless individuals only learn of errors on their credit report when they request copies from each agency, and this could be negatively affecting their credit score. Make sure to have these errors corrected as soon as possible.

For example, you may have paid off a loan and yet it is still showing on the credit report with a balance. Contact the lender directly to have this fixed. In the event this does not resolve the issue, contact the credit reporting agency to have the incorrect information removed. Be sure to document any contact with lenders and credit reporting agencies also.

Ensure Any Current Accounts Are In Good Standing

Negative information that is accurate cannot be removed. However, a person can help to balance this information by ensuring all current accounts are in good standing. This isn’t difficult, although many believe it is.

Simply make payments on time each month and the credit score will begin to improve. If negative information is not dropped from the credit report in a timely manner, be sure to contact the credit reporting agencies also. For example, foreclosures and repossessions may only appear on the credit report for seven years. If they remain after this time, you can request that they are removed.

Mix Credit Types

Credit reporting agencies, when calculating a borrower’s score, also look at the type of credit and the percentage of credit utilized. For example, individuals who have a mortgage, a car loan and a credit card demonstrate they are able to handle different types of debt, including revolving and fixed debt.

Furthermore, the percentage owed in comparison to the credit available comes into play when determining a credit score. Try to keep the amount owed at 30 percent or less of the total credit amount available to improve your score.

Consider Other Options

One thing borrowers often fail to do is consider other options. For example, look into taking out a personal loan with a lower interest rate to pay off existing debt. Doing so allows you to pay off the debt in a shorter period of time to boost your credit score. If you choose this option, visit Credit Culture to learn about their loan options.

Monitor your credit score at all times. A failure to do so can have a negative impact on your life and you won’t know this impact until you go to borrow funds, secure housing, or obtain a job. By being proactive, you can avoid problems and ensure your credit remains in good standing.

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Founder and chief editor of makemoneyinlife.com Blogger, Affiliate Marketer, Tech and SEO geek. Started this blog in 2011 to help others learn how to work from home, make money online or anything related to business and finances. You can contact me at makemoneyinlife@gmail.com

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